Note 9-Goodwill

 

During fiscal 2003, goodwill increased by approximately $1.7 billion. The increase related principally to the following acquisitions: Navision a/s with $1.2 billion allocated to Microsoft Business Solutions, $281 million for the Rare, Ltd. acquisition allocated to Home and Entertainment, and Placeware, Inc. with $180 million allocated to Information Worker. No impairment was charged to goodwill during fiscal 2003. During fiscal 2002, goodwill was reduced by $85 million, principally in connection with our exchange of all of the 33.7 million shares and warrants we owned of Expedia, Inc. to USA Networks, Inc. No goodwill was acquired or impaired during fiscal 2002. Goodwill by segment was as follows:

 

(In millions)

 

 

  

 

June 30

 

2002

 

2003

 

 

 

 

 

Client

 

$           26

  

$           37

Server and Tools

 

97

  

106

Information Worker

 

-

  

180

Microsoft Business Solutions

 

1,021

  

2,219

MSN

 

160

  

154

Mobile and Embedded Devices

 

5

  

28

Home and Entertainment

 

117

  

404

Goodwill

 

$   1,426

  

$   3,128